EFAV

Bill Gross forecasts the end of government stimulus and recommends buying Tobacco stocks.Both Europe and the US are providing massive fiscal stimulus, but neither will have healthy debt levels at the start of 2021.A sovereign debt level in excess of 90% is detrimental to GDP growth.Europe in particular will have a hard time further extending fiscal stimulus programs in the face of a possible second sovereign debt crisis.Low volatility stocks such as Tobacco or Utilities are a potentially good way of navigating low rates and low growth over the next years.